8. The cost of many electronic devices has fallen appreciably since they were first introduced. For instance,

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8. The cost of many electronic devices has fallen appreciably since they were first introduced. For instance, computers, cell phones, microwave ovens, and calculators not only provide more functions but also do so at a lower cost. Illustrate the impact of lower production costs on the supply curve. What happens to the size of the consumer surplus and producer surplus? If consumer demand for cell phones is relatively elastic, who is likely to benefit the most from the lower production costs?

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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